Great Basin's Ivanhoe diamond drilling results
Great Basin Gold Ltd GBG
Shares issued 16,918,271 Nov 16 close $2.15
Tue 16 Nov 99 News Release
Mr. Robert Hunter reports
Continuing diamond drilling is rapidly delineating extensive high-grade
gold-silver vein systems at the company's 100 per cent owned Ivanhoe
property. Ivanhoe is in Nevada on the Carlin trend midway between Franco
Nevada's Ken Snyder mine and Barrick's Goldstrike mine.
Great Basin's drilling of 40 core holes totalling 38,417 feet has confirmed
pervasive and extensive feeder vein systems to the overlying Hollister gold
deposit (2.8 million contained ounces) at Ivanhoe. The Hollister deposit, a
laterally extensive, disseminated gold deposit, is now interpreted as
simply a near surface leakage anomaly to an extensive structurally
controlled gold system below. Veins being intersected have gold grades,
widths, mineralogy and age nearly identical to those at the nearby Ken
Snyder mine (2.73 million tons grading 1.12 ounces per ton gold and 12.82
ounces per ton silver). The unprecedented vein intercept success ratio
coupled with the shear number of veins being intersected are the telltale
earmarks of another major world-class discovery being made on the Carlin
trend.
Systematic core drilling is outlining and extending multiple vein systems
at Ivanhoe that trend approximately east-west and dip to the south. Two
vein systems, Clementine and Gwenivere, have now been confirmed over strike
lengths of 1,400 feet and 800 feet respectively. Gold-silver mineralization
has also been extended over 500 vertical feet by drilling on several
sections along these trends. The Clementine and Gwenivere vein systems are
wide open to depth and strike and significant extensions to both trends are
anticipated. Many parallel veins and splays define each of the known
east-west systems. The total strike length of these veins greatly exceeds
the strike length of each system. Drilling continues with excellent
predictability of vein trend orientations along strike. In addition, at
least three more parallel vein systems are suspected north and south of the
Clementine and Gwenivere trends.
All of Great Basin's cored hole intercepts are reported on the following
table of assay results. Of the 40 core holes drilled to date, 53 vein
intersections have been made with a gold equivalent grade of better than
0.25 ounce per ton (the cut-off grade used at the Ken Snyder mine). The
grades of vein intercepts range from 0.25 ounce per ton gold equivalent to
5.77 ounces per ton gold equivalent. Outstanding gold intercepts in
individual holes include 10.6 feet grading 4.96 ounces per ton gold, 11.4
feet grading 2.94 ounces per ton gold, 4.3 feet grading 4.84 ounces per ton
gold, two feet grading 1.86 ounces per ton gold, 3.8 feet grading 1.9
ounces per ton gold, 9.9 feet grading 1.07 ounces per ton gold and 2.9 feet
grading 4.11 ounces per ton gold.
With a strong working capital position of $6.1-million, Great Basin plans
to continue drilling as rapidly as possible and as seasonal conditions
allow. To that end, applications for significant additional drill sites
have been filed with relevant state and federal authorities. Drilling is
using two diamond drill rigs and a reverse circulation rig, which is
precollaring the diamond drill core holes. Additional drill rigs are being
considered for the project.
For those not familiar with high-grade vein deposits on the Carlin trend,
an overview of the Ken Snyder mine is useful for comparison purposes.
Franco Nevada's successful Ken Snyder mine is a rich, gold-silver bearing
vein deposit 14 miles north of Great Basin's Ivanhoe property on the strike
continuation of the Carlin trend. It was discovered in 1994 by Dr. Ken
Snyder. Surface expression of the ore bearing veins is poor to non-existent
and detailed geologic mapping, conceptual targeting and drilling were
instrumental in the discovery process.
At the end of 1998, underground minable reserves (using a 0.25 ounce per
ton gold equivalent cut-off grade) were 2,726,8000 tons grading 1.115
ounces per ton gold and 12.82 ounces per ton silver totalling 3.74 million
ounces of gold equivalent. Mining widths average 5.5 feet, while veins
range in width from one foot to over 20 feet and average about four feet
wide.
Gold-silver veins occupy a complex, braided or anastomosing system of
steeply dipping faults. Minable reserves were identified on seven steeply
dipping veins and vein splays. The vertical extent of minable reserves
ranges from 300 feet to 1,700 feet.
The Ken Snyder mine was officially opened early this year at a capital cost
of $84-million (U.S.). Forecast annual production is 250,000 ounces of gold
equivalent per year at a cash cost of $80 (U.S.) per ounce which will make
the mine one of the lowest cost producers in the world. The mine uses
conventional underground mining methods and a 650-ton-per-day gold
processing plant.
HOLLISTER AREA ASSAY RESULTS
High-grade gold-silver vein system
From To Intercept Au Ag Au Eq.
ft ft ft oz/t oz/t oz/t
Drill Hole 2
731.4 735.8 4.4 0.291 0.3 0.30
903.0 912.0 9.0 0.223 0.5 0.23
968.0 976.0 8.0 0.243 1.8 0.27
984.5 990.0 5.5 0.178 13.4 0.41
Drill Hole 3
975.4 984.7 9.3 0.278 2.1 0.31
Drill Hole 4
607.1 617.7 10.6 4.964 47.8 5.77
634.5 647.1 12.6 1.635 39.0 2.30
829.1 833.0 3.9 0.316 6.0 0.42
Drill Hole 5
581.2 583.9 2.7 1.239 10.1 1.41
Drill Hole 9
780.0 785.0 5.0 9.949 6.2 1.05
800.0 805.4 5.4 0.300 7.5 0.43
Drill Hole 9A
546.1 557.5 11.4 2.942 1.4 2.97
Drill Hole 11
643.0 646.5 3.5 2.582 9.1 2.74
745.5 749.8 4.3 4.840 2.0 4.87
913.5 915.0 1.5 0.508 1.7 0.54
Drill Hole 12
R440.0 445.0 5.0 0.214 0.0 0.21
Drill Hole 13
658.2 660.0 1.8 0.190 4.6 0.27
Drill Hole 14
R420.0 445.0 25.0 0.332 0.0 0.33
incl.
430.0 440.0 10.0 0.450 0.1 0.45
681.3 683.4 2.1 0.539 0.9 0.56
689.9 701.9 3.0 0.292 11.1 0.48
716.9 719.1 2.2 0.964 6.2 1.07
Drill Hole 15
475.5 485.5 10.0 0.350 0.3 0.36
incl.
475.0 479.0 3.5 0.671 0.5 0.68
Drill Hole 23
694.5 701.3 6.8 0.306 17.4 0.60
incl.
697.8 701.3 3.5 0.348 27.1 0.81
719.4 721.2 1.8 0.271 29.5 0.77
Drill Hole 28
594.2 596.0 1.8 0.479 10.6 0.66
668.5 674.4 5.9 0.259 0.3 0.26
718.5 722.3 3.8 0.243 0.2 0.25
Drill Hole 29
612.4 613.8 1.4 0.627 3.5 0.69
680.2 685.0 4.8 0.412 0.2 0.42
726.3 729.8 3.5 0.221 0.1 0.22
739.1 744.5 5.4 0.440 0.2 0.44
Drill Hole 31
R215.0 235.0 20.0 0.275 0.0 0.28
incl.
215.0 225.0 10.0 0.353 0.0 0.35
R315.0 335.0 20.0 0.221 0.0 0.22
710.0 712.0 2.0 1.858 15.3 2.12
852.8 854.6 1.8 0.103 12.8 0.32
Drill Hole 35
436.0 441.0 5.8 0.393 0.1 0.40
465.0 467.0 2.0 0.571 0.1 0.57
482.5 486.0 3.5 0.213 0.1 0.21
Drill Hole 36
925.8 927.3 1.5 0.214 1.5 0.24
977.0 979.0 2.0 0.251 0.8 0.26
Drill Hole 37
801.0 804.8 3.8 1.902 0.8 1.92
936.0 940.5 4.5 0.263 2.1 0.30
Drill Hole 38
912.2 914.0 1.8 0.212 2.2 0.25
Drill Hole 39
841.7 845.7 4.0 0.453 15.8 0.72
Drill Hole 42
889.3 890.5 1.2 0.209 2.4 0.25
939.8 941.5 1.7 0.336 1.1 0.35
1051.3 1061.2 9.9 1.069 6.0 1.17
Drill Hole 44
R380.0 395.0 15.0 0.583 0.1 0.58
714.3 717.8 3.5 0.624 0.8 0.64
736.9 741.0 4.1 0.552 1.2 0.57
Drill Hole 45
764.2 766.4 2.2 0.435 AP -
1035.4 1037.1 1.7 0.175 AP -
Drill Hole 46
753.5 756.4 2.9 4.107 AP 4.10
AP = assay pending.
Holes 32, 33 and 34 did not reach target depth.
Holes 1, 17, 21, 22, 24, 30, 40 and 41, precollared, are not diamond
drilled yet.
Holes 16, 18, 19, 29 and 43 had no intersections greater than 0.25 ounce
per ton gold equivalent.
Gold equivalent (gold and silver) is calculated using a gold price of $325
(U.S.) per ounce and a silver price of $5.50 (U.S.) per ounce.
R = precollar rotary intercept.
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